Evaluate The Business Risk Involved In Strategic Options Case Study

B) Evaluate the business risk involved in Strategic options Risk involves profit is a common axiom in business. According to Rathan (2008) said that Risk is inherently involved and hidden in every business. So managing risk successfully is an integral part of business organization strategy and also it is an important part of management practice. There has been many research and study has been done how to mange risks in business. Many companies have initiated a team to manage risk which they face during the process of business. It is imperative to notice that no organization is away from business risk whatever it may be big or small.
Financial risk and sensitivity are of major concern in risk management process in business. Companies have
All business firms are concerned about the funds which are necessary to implement the strategies. The firms should be confident about the expected level of returns from the investment. Lagging or insufficient funds will cause the loss of returns. The strategic options selected will be justified financially as well as enable to achieve the organizational goals. The strategic options selected should be financially reliable and expected returns are forecasted by using different methods. As an example is a new product is implemented in the market, forecast to increase the future sales a new premise can be taken for lease for short period instead of long term agreement or purchasing the premise. An investment can be appraised in different angles and can be select the most applicable option. For initial screening payback period can be used. If the strategic option is fulfilling the target it can be eliminated. Then the criterion net present value can be used. Then examine how the investments influence the overall
The bitter war is takes place in between the inequitable technologies and market dominance. The success or failure of a company is evaluated by the ability to deal with the strong force of the standards war. In markets with strong network impacts have severe standards wars occur because where the customers give importance to the compatibility of services and products and also the consumers interconnect with each other. Positive feedbacks are shown by these markets and it will favor a single winner. Many standards of wars are taking place from the past in hundreds of years, based on these, the article by Shapiro and Varian explains a battle guide for carry on with a standards war. The standards of war are identified seven key assets that organizations can follow to establish a new technology successfully. The authors are recommending three tactics can be followed in standards battles and they are alliances building with business firms, managing the expectations of the consumers and take advantages of the first mover advantage. The authors articulate about the occurrence of standards of wars in the age of information. The organization can win the standards of wars by examining the past history of the standards wars and the authors discuss the standards wars take place during the year 1996. They are Microsoft vs. Netscape, Microsoft with real net works